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An econometric estimation of the aggregate import demand function for Bangladesh: some further results

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  • Anisul Islam
  • M. Kabir Hassan

Abstract

This study empirically estimates some critical parameters of the aggregate import demand function for Bangladesh for Bangladesh using quarterly time series data and by applying the Johansen-Juselius multivariate cointegration technique. Cointegration results indicate that the import demand function is dominated by income and relative prices. The income elasticity is significantly positive and exceeds unity indicating that aggregate imports are to be considered as 'luxury' goods. The effect of the relative price variable is significantly negative but its elasticity coefficient is less than unity.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 11 (2004)
Issue (Month): 9 ()
Pages: 575-580

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Handle: RePEc:taf:apeclt:v:11:y:2004:i:9:p:575-580

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Cited by:
  1. Hoque, Mohammad Monjurul & Yusop, Zulkornain, 2010. "Impacts of trade liberalisation on aggregate import in Bangladesh: An ARDL Bounds test approach," Journal of Asian Economics, Elsevier, vol. 21(1), pages 37-52, February.
  2. Caner COLAK & Selman TOKPUNAR & Yasin UZUN, 2014. "Determinants of Sectoral Import in Manufacturing Industry: A Panel Data Analysis," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 14(2), pages 271-281.
  3. Murad, S. M. Woahid, 2012. "Bilateral Export and Import Demand Functions of Bangladesh: A Cointegration Approach," MPRA Paper 36919, University Library of Munich, Germany.
  4. Yu Hsing & A. M. M. Jamal & Wen-jen Hsieh, 2009. "Application of the monetary policy function to output fluctuations in Bangladesh," Economics Bulletin, AccessEcon, vol. 29(3), pages 2113-2122.

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